Compensation & Benefits ( Chapter 17); Government & Legal Issue in Compensation
Establishing Comparable Worth Plan ( 4-Basic Steps)
1. Adopt a single "gender neutral" point job evaluation plan for all jobs within a unit 2. All jobs with equal job evaluation results should be paid the same 3. Identify the percentages of male and female employees in each job group 4. The wage-to-job evaluation point ratio should be based on the wages paid for male-dominated jobs
Exemptions from minimum wage & Overtime Provisions
1. Executive Exemption 2. Administrative Exemption 3. Professional Exemption 4. Computer Employee Exemption 5. Outside Sales Exemption 6. Highly Compensated Employees
Fair Labor Standards major provisions
1. Minimum wage 2. Hour of Work 3. Child Labor
Job Hierarchy
A grouping of jobs based on their job-related similarities and differences and on their value to organization's objectives
Job Classifications (Grade)
A grouping of jobs that are considered substantially similar for pay purposes
Title VII of the Civil Rights Act of 1964
A major piece of legislation prohibiting pay discrimination. It is mush broader in intent than the Equal Pay Act, forbidding discrimination on the basis of race, color, religion, sex, pregnancy, or national origin
Comparable Worth
A policy that women performing jobs judged to be equal on some measure of inherent worth should be paid the same as men, excepting allowable differences, such as seniority, merit, production-based plans, and other non-sex related factors
Pay Equity
A policy that women performing jobs judged to be equal on some measure of inherent worth should be paid the same as men, excepting allowable differences, such as seniority, merit, production-based plans, and other non-sex related factors
The Equal Pay Act ( EPA) of 1963
An amendment to the Fair Labor Standards Act of 1938 that prohibits pay differentials on jobs that are substantially equal in terms of skills, efforts, responsibility, and working conditions, except when they are the result of bona fide seniority, merit, production-based systems, or any other job-related factor other than sex
Fair Labor Standards Act of 1938
Covers all employees (with some exceptions) of companies engaged in interstate commerce or in the production of goods for interstate commerce
Value Discrimination
Discrimination that focuses on the pay women and minorities receive for the work they perform. Discrimination occurs when members of these groups are paid less than white males for performing substantially equal work
Minimum wage Legislation
Intended to provide as an income floor for workers in societies less productive jobs.
Age Discrimination in Employment Act (ADEA) of 1967 (Amended 1978, 1986, and 1990)
Legislation that makes non-federal employees age 40 and over a protected class relative to their treatment in pay, benefits, and other personnel actions. The 1990 amendment is called the Older Worker Benefit Protection Act
Living Wage
Pay legislation in some U.S. cities that require wages above the federal minimum wage. Often applies to in City government employees
Gender Pay Equity
Same as comparable worth
Prevailing Wage Laws
Set pay for work done to produce goods and services by the federal government. A government-defined prevailing wage is the minimum wage that must be paid for work done on covered government projects or purchases
Access Discrimination
The denial of particular jobs, promotions, or training opportunities to qualified women or minorities
Disparate Treatment
Discrimination theory that outlaws the application of different standards to different classes of employees unless the standards can be shown to be business-related
Disparate Impact
Discrimination theory that outlaws the application of pay practices that may appear to be neutral but have a negative effect on females or minorities unless those practices can be shown to be business-related